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Universities as engines of growth? Prof Nola Hewitt-Dundas [email protected] @profnola

Universities as engines of growth

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Page 1: Universities as engines of growth

Universities as engines of growth?

Prof Nola Hewitt-Dundas

[email protected]

@profnola

Page 2: Universities as engines of growth

Teaching

Third-Mission

Research

Page 3: Universities as engines of growth

Teaching

Third-Mission

Commercialization

Research

£33.2 Bn

£39.9 Bn2.8%

£10.7 Bn757k jobs

4% Researchers

16%Highly Cited

Articles

Source: Universities UK: Higher Education in Numbers

Page 4: Universities as engines of growth

A Sector Under Pressure

Int. Student Mobility

Public Finances

ICTLifelong learning

Regulatory changes –

Private Providers

Price competition

Competition Privatisation Marketization

(HEPI, 2017).

Page 5: Universities as engines of growth

Innovation & Performance benefits

All Firms Small Medium Large

New to the Market Innovation

University Collaboration (0/1) 0.247*** (0.033)

0.221***(0.046)

0.213 ***(0.032)

0.212*** (0.083)

Sales of new-to-the-marketinnovations

University Collaboration (0/1) 4.085* (1.788)

1.378 (3.013)

15.860*** (1.960)

12.392*** (2.009)

Source: Hewitt-Dundas, N, Gkypali, A., Roper, S. 2017 Does learning from prior collaboration help firms to overcome the ‘two-worlds’ paradox in university-business collaboration? ERC Research Paper No.55

Do firms benefit from University engagement?

Point 1: Strong Innovation Benefits, but Commercialisation pipeline for Small firms needs fixed

Page 6: Universities as engines of growth

What is the level of University engagement?

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Universities Customers Suppliers ConsultanciesCompetitors

20.0

48.843.9

24.019.4

Source: UK Innovation Survey

% Innovators

Page 7: Universities as engines of growth

Uneven Geography of Engagement

Actual 75th

PercentileGap

Res. Contracts No.

1,936 2,357 421

Res. Contracts £m

£31.5m £36.8m £5.3m

CPD & CE£m

£225m £285.6 £60.5m

IP Income (non-software) £m

£5.1m £6m £0.9m

IP Income (software) £m

£52m £73m £21m

Source: HEFCE 2016 University-SME engagement: the geography of connectivity across England and the effects on Innovation

Point 2: U-B Engagement Levels are sub-optimum

Page 8: Universities as engines of growth

Supply-side ConsiderationsUK Universities: High Research Intensive (HRI) and Low Research Intensive (LRI)• Strategy: HRI – KT for development and exploitation of IP and

maximizing the return on research; LRI – Human Capital Dev.

• Activity: LRI generate only a fraction of all KT measures (Collaborative research, Contract research, consultancy, patents, licenses, spinouts)

• Geography: HRI perform a smaller proportion of KT in the region, yet, absolute value still remains significantly higher than for LRIs.

Source: Hewitt-Dundas, N 2012. Research Intensity and Knowledge Transfer Activity in UK Universities. Research Policy 41(2) 262-275

Point 3: Heterogeneity in KE Capability Across HE Sector

Page 9: Universities as engines of growth

Demand-side Considerations

• Accessing international Universities has limited benefit –Investment in UK HE is required

• Overall, firms are more likely to engage with National Universities rather than Local ones: Finding the Right Partner!

• Small firms are 12% more likely to engage with local firms• Effects of National Collaboration is larger than local for all firms

UKIS2004-2012

Alln=23,616

10-49n=10,910

50-250n=6,629

250+n=6,053

Regional University 0.062*** 0.071*** 0.068*** 0.038

National University 0.084*** 0.103*** 0.082*** 0.066***

International University 0.011 -0.063* 0.082* 0.039

Point 4: Firms may need support to find the ‘right’ University

Source: Hewitt-Dundas, N, Gkypali, A, Roper, S. 2017 Accessibility, utility and learning effects in university-business collaboration, ERC Research Paper No. 57

Page 10: Universities as engines of growth

University Spinouts: ‘Rhetoric of Aspiration’

Annual growth in Spinout formation 15%

Challenges:Approximately one-third not generating revenueTechnology is narrow with growth constrained25% have founders with no commercial experienceUnder-representation of Female-led spinouts

Only 25% fully committed to spinoutAvg. Main founder commits 20% of time2nd Founder commits 10% of time

Only one-third using incubators / science parks BUT does this matter?Innovation to Commercialisation of University Research (ICURe)

Point 5: Spinout activity can and will increase, but it requires targeted support

Page 11: Universities as engines of growth

A final word

“There are no free rides when it comes to engagement. Companies typically have skin in the game”

Page 12: Universities as engines of growth

Member Programme

www.csit.qub.ac.ukCSIT is a Research Centre of the ECIT

Institute12

Full members:

Associate members (selection):

Page 13: Universities as engines of growth

The Era of Open Science is over with significant implications for Who will generate knowledge for innovation and Who will have access to this in the future